The current times have proven to be highly volatile for the media and entertainment industry. Not only has the OTT v/s Cinemas debate been omnipresent lately, a majority of the OTT platforms throughout the country have reported losses despite a constant flow of content into their viewing libraries.
While global giants like Netflix and Prime Video have continued to maintain their viewing and profit numbers, numerous ingrown platforms like Zee5, ALTT, Aha, and HoiChoi have witnessed significant operating losses throughout different quarters of the current financial year.
One major reason for this is the quality of the content. Since a majority of the platforms that have reported losses are regional platforms, their viewer base is comparatively limited. When this is coupled with mediocre content, the result is undoubtedly, exorbitant losses.
On the other hand, bigger platforms like Disney+ Hotstar, SonyLiv, and JioCinema continue to dominate the OTT viewing space in the country. Moreover, with the option to stream free sports content, JioCinema has further pulled a significant proportion of viewers onto itself.
While this strategy proved to be effective during times like the IPL 2024, it will become a beacon of losses for the platform itself if these viewers go uncapitalized. Which is to say, how soon will JioCinema resort to pricing its sports content as well? And will it finally have some positive implications on the overall performance of other platforms?
Stay tuned to find out!